DECREE NO. 73/1999/ND-CP REGULATES POLICIES TO ENCOURAGE SOCIALIZATION OF ACTIVITIES IN EDUCATION, HEALTHCARE, CULTURE, AND SPORTS SECTORS FOR NON-PUBLIC ENTITIES AND INDIVIDUALS. THIS DECREE PROVIDES TAX BENEFITS, LAND USE RIGHTS, CAPITAL INVESTMENT, INSURANCE, CREDIT, REWARDS, FINANCIAL MANAGEMENT, AND STATE SUPPORT.
적용 범위
NON-PUBLIC ENTITIES OPERATING IN THE EDUCATION, HEALTHCARE, CULTURE, AND SPORTS SECTORS; INDIVIDUALS WITH RESOURCES TO INVEST IN THESE SECTORS.
핵심 사항
- THE STATE ENCOURAGES THE DEVELOPMENT OF NON-PUBLIC ENTITIES AND PROVIDES TAX BENEFITS (PROPERTY TAX, LAND TAX, VALUE ADDED TAX, ENTERPRISE INCOME TAX), FEES, CREDIT, INSURANCE, AND REWARDS.
- NON-PUBLIC ENTITIES ARE EXEMPT OR ELIGIBLE FOR REDUCED ENTERPRISE INCOME TAX FOR 4-9 YEARS FROM THE DATE OF ESTABLISHMENT IF THEY DO NOT ENGAGE IN PROFIT-SEEKING ACTIVITIES.
- THE STATE REIMBURSES TAX PAYMENTS TO NON-PUBLIC ENTITIES TO DEVELOP INFRASTRUCTURE AND IMPROVE SERVICE QUALITY.
- NON-PUBLIC ENTITIES RECEIVE LAND USE BENEFITS WHEN LEASING OR PURCHASING STATE PROPERTY.
- AUTHORITY TO ESTABLISH NON-PUBLIC ENTITIES BELONGS TO EACH LEVEL OF GOVERNMENT AND PEOPLE'S COMMITTEES.
🌐 이 문서의 사회적 영향
- POSITIVE IMPACTS: ENHANCED CAPITAL INVESTMENT IN EDUCATION, HEALTHCARE, CULTURE, AND SPORTS; IMPROVED QUALITY OF PUBLIC SERVICES.
- NEGATIVE IMPACTS: POSSIBLE UNFAIR COMPETITION BETWEEN PUBLIC AND NON-PUBLIC ENTITIES; EFFECTS ON THE INTERESTS OF WORKERS IN PUBLIC ENTITIES.
❓ 자주 묻는 질문
WHEN ARE NON-PUBLIC ENTITIES EXEMPT FROM PROPERTY AND LAND TAXES?
WHEN THE STATE ALLOWS THE USE OF LAND FOR PURPOSES SPECIFIED IN CLAUSE 1, ARTICLE 7 OF THIS DECREE.
MUST INCOME FROM NON-PROFIT ACTIVITIES BE SUBJECT TO ENTERPRISE INCOME TAX?
NO, NON-PUBLIC ENTITIES ARE ELIGIBLE FOR LOWER TAX RATES OR EXEMPTIONS FROM ENTERPRISE INCOME TAX IF THEIR ACTIVITIES ARE NOT FOR PROFIT.
WHAT LAND USE BENEFITS DO NON-PUBLIC ENTITIES RECEIVE?
PRIORITY IN LEASING STATE PROPERTY AND INFRASTRUCTURE; CONTINUOUS MANAGEMENT AND USE OF ASSETS INVESTED BY THE STATE AFTER TRANSITION FROM PUBLIC TO SEMI-PUBLIC STATUS.
WHICH ACTIVITIES ARE EXEMPT FROM VALUE ADDED TAX FOR NON-PUBLIC ENTITIES?
HEALTHCARE: DIAGNOSIS AND TREATMENT; CULTURAL AND SPORTS ACTIVITIES FOR THE PUBLIC; TEACHING AND VOCATIONAL TRAINING; PRINTING, PUBLISHING, AND DISTRIBUTION OF TEXTBOOKS.
CAN NON-PUBLIC ENTITIES RECEIVE REIMBURSEMENT FOR ENTERPRISE INCOME TAX PAYMENTS?
YES, IN CASES WHERE IT IS NECESSARY TO INVEST IN INFRASTRUCTURE AND EXPAND OPERATIONS.
전문
DECREE OF THE GOVERNMENT
On policies to encourage socialization
for activities in the fields of education, health care, culture, and sports
_______________________________
THE GOVERNMENT
Pursuant to the Law on Government Organization dated September 30, 1992;
To implement Resolution No. 90/CP dated August 21, 1997 of the Government on orientations and policies for socializing activities in education, health care, and culture;
Considering the proposals of the Minister of Finance, the Minister of Planning and Investment, the Chairman of the Civil Service Committee under the Government, the Minister of Education and Training, the Minister of Labor, Invalids and Social Affairs, the Minister of Health, the Minister of Culture, Sports and Tourism, the Chairman of the Sports Management Committee, and the Director General of the Land Administration General Department;
DECREE:
PART I
GENERAL PROVISIONS
Article 1. Socializing activities in education, health care, culture, and sports involves mobilizing and organizing broad participation from the people and the whole society in the development of these endeavors with the aim of gradually improving access to education, health care, culture, and sports in both material and spiritual aspects of people's lives.
Article 2. Alongside strengthening public organizations, the State encourages the extensive development of non-public institutions in accordance with national planning in the fields of education, health care, culture, and sports, and non-commercial activities (hereinafter referred to as non-public institutions).
The State and society recognize and treat equally the products and services provided by non-public institutions compared to those provided by public institutions. Non-public institutions also share responsibility for receiving and providing services to social policy beneficiaries as public institutions do.
Article 3. The State encourages individuals and organizations to mobilize resources from the people and various economic sectors to develop educational, health care, cultural, and sports activities in compliance with the law.
Article 4. Forms of non-public institutions:
1. Semi-public: These are institutions established based on cooperation between state organizations and non-state organizations from all economic sectors or individuals through methods such as new establishment, full or partial transfer from public units to jointly invest in physical infrastructure, manage, and operate all activities according to the law.
2. Private: These are institutions established and managed by organizations and operated according to the law using capital outside the state budget (capital from organizations, collectives, or individuals). State funds, assets, and expenses shall not be used to invest in private institutions.
3. Individual: These are institutions established and managed by individuals or households and operated according to the law.
Ministers of the Ministries of Education and Training, Labor, Invalids and Social Affairs, Y Health, Culture, Sports and Tourism, and the Chairman of the Sports Management Committee shall cooperate with relevant ministries and agencies, based on Resolution No. 90/CP dated August 21, 1997 of the Government on orientations and policies for socializing activities in education, health care, and culture, and this Decree, to develop plans for the development of non-public forms within their respective sectors, concretize policies and levels of priority, and encourage the development of non-public forms suitable for each field and type of activity.
Chapter II
POLICIES TO ENCOURAGE NON-PUBLIC INSTITUTIONS
I. REGARDING PHYSICAL INFRASTRUCTURE AND LAND
Article 5. Non-public institutions are prioritized to lease state-owned houses and infrastructure facilities according to government regulations.
Article 6. Public units that are authorized to decide to convert to semi-public institutions (partial or full conversion) shall continue to manage and utilize state-invested assets (including land and assets on land) based on inventory, revaluation at current prices, and determination as state equity contributions.
Article 7. Provincial People's Committees shall base on their authority, planning, land use plans, and local land fund capacity to allocate land or lease land to non-public institutions for their operations. Non-public institutions must use allocated or leased land for its intended purpose and comply with all land laws. Any misuse of land will result in its recovery according to the law.
Based on the current Land Law, the payment for land use rights and land rent for non-public institutions are regulated as follows:
1. The State grants long-term stable land use rights without collecting land use fees for land used to build hospitals, healthcare facilities, schools, vocational training centers, dormitories, stadiums, sports venues, swimming pools, training centers, cultural houses, performance theaters, libraries, exhibition halls, and other cases as specified by the Government.
2. For other cases where the State allocates or leases land, the payment for land use rights or land rent shall be made according to current laws.
Article 8. The State encourages organizations and individuals who have houses and land to lease them to non-public institutions for their operations for purposes specified in Clause 1, Article 7 of this Decree.
Organizations and individuals who lease houses and land to non-public institutions for their operations for purposes specified in Clause 1, Article 7 of this Decree are exempt from value-added tax on rental income and are reimbursed by the State up to the maximum amount of corporate income tax payable on rental income from such purposes.
Organizations and individuals who are reimbursed by the State for taxes paid must ensure stable rental terms, reduced rental rates, and use the refunded money to invest in infrastructure for leasing.
II. REGARDING TAXES, FEES, AND CHARGES
Article 9. Regarding property tax and land tax
1. Non-public institutions granted land for use for purposes specified in Clause 1, Article 7 of this Decree are exempt from property tax and land tax.
2. For other cases where the State grants land, property tax and land tax shall be paid according to current laws.
Article 10. Regarding Stamp Duty
Non-public institutions are exempt from stamp duty when registering land use rights and house ownership.
Article 11. Regarding value-added tax
Non-public institutions are exempt from value-added tax on the following activities:
1. Healthcare activities: medical examinations, treatment, disease prevention, and health rehabilitation for individuals.
2. Cultural activities, exhibitions, and sports events with massparticipation, training sessions, and competitions that do not charge fees orcharge fees but are not for business purposes.
3. Performing arts activities such as singing, dancing, music, drama,circus; other performing arts activities and services organizing performingarts; film production of all types.
Film distribution and screening activities: for celluloid filmsregardless of film themes, for video films only documentary, newsreel, andscientific films.
4. Teaching and vocational training including cultural education,foreign languages, computer science, and other trades.
5. Printing, publishing, and distribution: newspapers, magazines,professional newsletters, political books, textbooks, teaching materials, booksof legal texts, books printed in ethnic minority languages; paintings, posters,propaganda, and promotional materials.
6. Technology transfer (excluding the value of equipment and devicesaccompanying the transferred technology).
Article 12. Regarding corporate income tax
1. On tax rates:
a) Non-state institutions operating in education, healthcare,culture, and sports fields with activities such as teaching; vocationaltraining; medical examination and treatment; traditional folk music and artperformances; film screenings; collecting, preserving, developing, andpromulgating traditional culture; exhibitions and sports activities not forbusiness purposes shall enjoy preferential corporate income tax rates asfollows:
A 15% tax rate shall apply if operating in areas with particularlydifficult socio-economic conditions.
A 20% tax rate shall apply if operating in areas with difficultsocio-economic conditions.
A 25% tax rate shall apply if operating outside the aforementionedareas.
b) Other cases not specified in point a, Clause 1, Article 12 of thisDecree shall be subject to a 32% tax rate as provided by current laws.
c) Non-state institutions shall not be required to pay additionalcorporate income tax on income from activities specified in point a, Clause 1,of this Article.
2. On exemption and reduction of corporate income tax:
a) Newly established non-state institutions in education, healthcare, culture, and sports fields including schools at various levels; vocationaltraining centers enhancing workers' skills and improving business managementknowledge; healthcare facilities in medical examination and treatment fields;ethnic cultural houses; traditional folk music and dance troupes; facilitiescollecting, preserving, developing, and promoting traditional culture; sportstraining and competition centers; and other cases as prescribed by theGovernment shall enjoy preferential exemptions and reductions of corporateincome tax from the time they generate taxable income as follows:
Exemption for the first four years and a 50% reduction in tax payablefor the next nine years for institutions investing in areas with particularlydifficult socio-economic conditions.
Exemption for the first four years and a 50% reduction in tax payablefor the next seven years for institutions investing in areas with difficultsocio-economic conditions.
Exemption for the first two years and a 50% reduction in tax payablefor the next four years for institutions investing outside the aforementionedareas.
b) Non-state institutions specified in point a, Clause 1, of thisArticle that expand their scale, innovate technology, and improve ecology andenvironment shall enjoy preferential exemptions and reductions of corporateincome tax on additional income generated from new investments from the timethey generate taxable income as follows:
Exemption for four years and a 50% reduction in tax payable for thenext seven years if operating in areas with particularly difficult socio-economicsituations.
Exemption for three years and a 50% reduction in tax payable for thenext five years if operating in areas with difficult socio-economic situations.
Exemption for one year and a 50% reduction in tax payable for thenext four years if operating outside the aforementioned areas.
The procedures, formalities, and methods for determining the amount oftax exempted and reduced shall be in accordance with current tax laws.
Article 13. In cases where it is necessary to invest in infrastructureconstruction, expand, and enhance the quality of activities, the State mayprovide financial support to non-state institutions for corporate incometaxation that non-state institutions must pay from income generated fromteaching; vocational training; medical examination and treatment; traditionalfolk music and art performances, film screenings; collecting, preserving,developing, and promoting traditional culture; exhibitions and sportsactivities not for business purposes.
The maximum amount of State financial support shall be equal to thecorporate income tax that non-state institutions must pay. Non-stateinstitutions may only use the State financial support for developing physicalfacilities, expanding, and enhancing the quality of their operations.
The Ministry of Finance shall provide detailed guidance on theprocedures and formalities for financial support and implement inspections onthe use of financial support at non-state institutions as stipulated in thisArticle.
Article 14. Income tax for individuals with high income
Individuals belonging to state institutions who work overtime atnon-state institutions shall be exempt from income tax for individuals withhigh income from income paid by non-state institutions.
Individuals contributing capital to non-state institutions shall beexempt from income tax for individuals with high income from income contributedto non-state institutions.
Article 15. Regarding export tax and import tax
1. Non-state institutions carrying out activities entitled topreferential treatment as specified in point a, Clause 1, Article 12 of thisDecree shall be exempt from import tax on goods that have not been produceddomestically or have been produced but do not meet quality requirements:
Specialized equipment, machinery, and transportation means withinthe imported production lines to create fixed assets of non-state institutionsor to expand investment scale and innovate technology.
Specialized transportation means for transporting staff, teachers,and students.
2. Specialized equipment, machinery, and transportation means exemptfrom import tax must be approved by the competent authority for preferentialtreatment and registered with customs to implement.
3. The list of equipment, machinery, and specialized transportationmeans exempted from import tax, the authority to grant such exemptions fornon-state public institutions as stipulated in this Article shall be applied inaccordance with the provisions of the Law on Export Tax, Import Tax; the Law onEncouraging Domestic Investment, and other current legal documents.
III. CREDIT
Article 16. Non-state public institutions implementing activities entitled topreferential treatment as provided in point a, Clause 1, Article 12 of thisDecree shall enjoy state credit preferential policies pursuant to current lawsand regulations to build material infrastructure, purchase equipment to serve thespecialized tasks of units as approved by competent authorities.
IV. INSURANCE
Article 17. Non-state public institutions are responsible for implementing andguiding employees within their units to fully comply with current stateprovisions on Social Insurance and Health Insurance so that employees in theunits can enjoy benefits under Social Insurance and Health Insurance as those instate public institutions.
Civil servants and employees transferring from state publicinstitutions to non-state public institutions shall retain their social insurancecontributions during their time at state public institutions; or be settledaccording to a one-time allowance regime as prescribed by the state if theyrequest it.
V. REWARDS AND AWARDS
Article 18. Employees in non-state public institutions shall be eligible forconsideration for commendations, certificates of merit, medals, and honors bythe state, similar to those in state public institutions, and shall receiveawards according to the state-prescribed levels from the state budget.
Chapter III
FINANCIAL MANAGEMENT
Article 19. Non-state public institutions organize fee collection, servicecharges, sales revenue, and other income sources to offset expenses inaccordance with government regulations and authorized agencies:
1. Collect tuition fees, hospital fees, and other contributions asprescribed by the government and authorized agencies.
2. Collect service charges and sales revenue based on agreed pricesbetween service providers and service recipients... (excluding products andservices priced by the state).
In addition to the aforementioned revenues, non-state publicinstitutions may accept financial support from domestic and foreignorganizations and individuals in accordance with legal regulations governing themanagement and utilization of such funds.
Article 20. The annual financial results of non-state public institutions shallbe determined based on the difference between total income and total expenditureof the unit in the fiscal year after fulfilling obligations to remit to thestate treasury as prescribed by law. A portion of the unit's income shall bereinvested to supplement capital, enhance infrastructure, reduce fee levels,provide partial funding for policy beneficiaries; reward and benefit employeeswithin the unit and directly cooperating entities. The remainder shall bedistributed according to the proportion of state, collective, and individualcontributions to the non-state public institution.
The portion of income derived from state contributions shall beretained by the institution for continued investment.
Article 21. Non-state public institutions must register with financialauthorities; organize accounting and statistical work in accordance with legalregulations; prepare quarterly and annual final reports on all income,expenditure, capital increase and asset changes, and submit them to financialauthorities; implement financial transparency as prescribed by law. Non-statepublic institutions must adhere to accounting systems appropriate to the typeof activity in each field, following the guidance of the Ministry of Finance.
Chapter IV
STATE MANAGEMENT OF NON-STATE PUBLIC INSTITUTIONS
ACTIVITIES IN THE EDUCATION, HEALTH, CULTURE, AND SPORTS SECTORS
Article 22. The content of state management over non-state public institutionsoperating in education, health, culture, and sports sectors includes:
1. Based on strategic plans, planning, and implementation plans foreach period and annually for education, health, culture, and sports, establishdirections for socialization in each sector as a basis for all levels, sectors,and the people to organize and implement.
2. Enact policies and incentive systems suitable for various forms ofactivities in education, health, culture, and sports, consistent with thedevelopment requirements of each sector in each period and region.
3. Uniformly manage content, programs, quantity, and qualityrequirements for services in each sector as a basis for organizingimplementation, monitoring, and supervision by all levels, sectors, and societyas a whole.
4. Issue and revoke licenses for non-state public institutionsoperating in the education, health, culture, and sports sectors in accordancewith regulations.
5. Inspect and supervise compliance with state regulations bynon-state public institutions operating in the education, health, culture, andsports sectors; handle violations according to the law.
6. Ministries, sectors, People's Committees at all levels shallimplement the above state management contents according to their functions,duties, and authorities.
Article 23. Authority to permit the establishment of non-state publicinstitutions in the education sector is as follows:
1. The Prime Minister permits the establishment of universities.
2. The Minister of Education and Training permits the establishmentof colleges and preparatory universities.
3. Ministers of ministries, heads of ministerial-level agenciesunder the Government permit the establishment of semi-public institutions orconvert entire or part of vocational high schools and direct vocational schoolsto semi-public status.
4. The Chairman of the Provincial People's Committee permits theestablishment of secondary schools, boarding schools for ethnic minorities;vocational high schools, vocational schools managed by the Provincial People'sCommittee.
5. The Chairman of the District People's Committee permits theestablishment of kindergartens, primary schools, junior high schools, andboarding schools for ethnic minorities managed by the District People'sCommittee.
Article 24. Authority to permit the establishment of non-state publicinstitutions in the healthcare sector is as follows:
1. The Prime Minister decides to establish large-scale healthcarefacilities with national and international significance.
2. The Minister of Health permits the establishment of hospitals.
3. The Minister of each Ministry, the Head of each ministry-levelagency, and the agency under the Government shall permit the establishment ofa quasi-public facility or the conversion to quasi-public status for the entireor part of a health care facility directly subordinate to them.
4. The Chairman of the People's Committee at the provincial levelshall permit the establishment of a health care facility managed by thePeople's Committee at the provincial level.
Article 25. The authority to permit the establishment of non-state-ownedfacilities in the cultural sector is as follows:
1. The Prime Minister shall permit the establishment of a culturalfacility with a large scale of national and international significance.
2. The Minister of each Ministry, the Head of each ministry-levelagency, and the agency under the Government shall permit the establishment ofa quasi-public facility or the conversion to quasi-public status for the entireor part of a cultural facility directly subordinate to them.
3. The Chairman of the People's Committee at the provincial levelshall permit the establishment of a cultural facility managed by thePeople's Committee at the provincial level.
Article 26. The authority to permit the establishment of non-state-ownedfacilities in the sports sector is as follows:
1. The Prime Minister shall permit the establishment of a training,coaching, and competition facility, stadium, and field with a large scale ofnational and international significance.
2. The Minister of each Ministry, the Head of each ministry-levelagency, and the agency under the Government shall permit the establishment ofa quasi-public facility or the conversion to quasi-public status for the entireor part of a sports facility directly subordinate to them.
3. The Chairman of the People's Committee at the provincial levelshall permit the establishment of training, coaching, and competitionfacilities, stadiums, fields, and recreational areas with a small scale ofsports character managed by the People's Committee at the provincial level.
Article 27. The establishment of facilities with foreign investment in theeducation, health care, cultural, and sports sectors shall be carried out inaccordance with the Law on Foreign Investment in Vietnam and other relevantregulatory documents.
Article 28. The level that permits the establishment of non-state-ownedfacilities shall have the authority to suspend operations or dissolve suchfacilities when they operate contrary to the license granted or violate therelevant legal regulations.
Chapter V
IMPLEMENTATION
Article 29. This Decree shall take effect thirty days from the date ofsignature. Previous provisions regarding policies encouraging socialization foractivities in the education, health care, cultural, and sports sectors thatcontradict the provisions of this Decree shall be abolished.
Non-state-owned facilities operating in the education, health care,cultural, and sports sectors established before the effective date of thisDecree, if still within the period of enjoying benefits according to thisDecree, shall continue to enjoy the benefits stipulated in this Decree for theremaining period.
Article 30. The Ministers of Education and Training, Labour, Invalids andSocial Affairs, Health, Culture, Sports and Tourism, and the Chairman of theNational Sports Committee shall be responsible for coordinating with relevantministries and sectors to provide specific guidance on the implementation ofthis Decree in accordance with the characteristics and organization of eachsector.
Article 31. The Ministers, Heads of ministry-level agencies, Heads ofagencies under the Government, Chairmen of Provincial People's Committees, andChairmen of Municipal People's Committees directly under the CentralGovernment shall be responsible for implementing this Decree./.
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